- 1). Read the letter you receive from the court. When a debtor files a bankruptcy case, all creditors must be informed. The court will send a letter explaining all the vital information in the case, including the date of filing, the chapter of bankruptcy used, deadlines for filing claims, and the time and location of the meeting of creditors. The letter will also provide rules on how to collect what you are owed.
- 2). Avoid contacting the debtor. One of the most fundamental rules of bankruptcy is that when a debtor files a petition, creditors must cease and desist from contacting the debtor regarding a debt. This provision is called the "automatic stay," since it immediately -- and automatically -- stops all collection activities, by law.
- 3). File a claim following the instructions from the court. If you don't submit a timely claim, you are out of luck and will not get paid anything.
- 4). Vote on the debtor's reorganization plan. If the debtor filed a Chapter 11 or Chapter 13 bankruptcy, that means he intends to repay his creditors with a monthly payment plan. The debtor must file a plan with the court, and the plan must meet with creditor approval. If the debtor has more than 20 creditors, only the 20 largest vote on the plan on behalf of other creditors.
- 5). Entertain buyout offers. Bankruptcy can take time, especially if a case is complicated or if there are many creditors. If you don't want to wait months or even years to receive your payment, you may be able to sell your claim to another individual or company. Typically, the buyout offer will be for less than your total claim, but if you need the money soon, or if you fear that you will end up receiving no payment at all, you may consider accepting a buyout offer.
- 6). Wait in line. Bankruptcy claims are paid in order, with attorneys and administrative claims at the top and equity claims at the bottom. If you do not hold a priority or secured claim on your debtor, you are likely near the end of the line in terms of the payment structure. Priority and secured creditors are usually entities such as taxing authorities and mortgage companies.
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